Nigeria’s interest in Bitcoin remains unwavering despite regulatory restrictions
Even though President Tinubu’s administration’s crackdown on peer-to-peer cryptocurrency trading has sparked anger among many young Nigerians, their enthusiasm for Bitcoin has not waned.
Nigeria, Africa’s largest cryptocurrency market, is currently the country with the most interest in Bitcoin (BTC), followed closely by El Salvador, according to Google Trends statistics.
Geographic analysis shows that Delta State is leading in Bitcoin interest, followed by states such as Anambra, Ekiti, Enugu, Ondo, Ebonyi, Bayelsa, Osun, Edo and Imo. Notably, Nigeria’s commercial hub, Lagos, was left out of the top 15 cities for Google search interest in Bitcoin.
Data shows that regions with less secure security, lower banking penetration, and higher proportions of millennials are more likely to adopt Bitcoin as a trusted means of storing value and facilitating payments.
Nigerians have turned to stablecoins, often pegged to the U.S. dollar, as a hedge against inflation and exchange rate fluctuations. Tether (USDT) dominates the market as the most popular stablecoin, and its use is becoming increasingly practical for local businesses and the diaspora to conduct transactions.
According to a United Nations study, Nigeria is now one of the youngest countries in the world and one of the fastest growing countries in Africa. The age group under 15 accounts for 43% of the total population.
Crackdown on the cryptocurrency market
The Nigerian government has recently taken some questionable steps to address its economic problems and prevent a currency collapse.
In May 2024, the Nigerian government began preparing to introduce new regulations banning peer-to-peer cryptocurrency exchanges using the country’s currency, the Nigerian Naira.
Nigeria’s Securities and Exchange Commission (SEC) also accused the Binance cryptocurrency exchange of engaging in currency manipulation and speculation, which it claimed led to the decline in the value of the naira and necessitated government intervention.
Related: Foreign investment in Nigeria is at risk following Binance bribery allegations.
The regulator’s firm stance follows its ban on Binance’s operations in Nigeria earlier this year, followed by the arrest and detention of top executives Tigran Gambaryan and Nadeem Anjarwalla, demonstrating its resolve to uphold regulatory standards. It showed up and showed off.
While Anjarwalla escaped custody, Gambaryan was detained in Abuja and is currently on trial for money laundering and tax evasion.
In January 2024, the Central Bank of Nigeria issued initial guidelines for banks to open cryptocurrency accounts, but banks are still not permitted to trade or hold virtual assets within their portfolios.
magazine: Cryptocurrency Roundup: How much enforcement is too much?
